Rapeseed comes out as winner of price comparison with wheat
In Germany, UFOP reports that the current price gap between German farm prices of wheat and new-crop rapeseed amounts to around EUR 202 per tonne. In other words, the price advantage of rapeseed has increased further.
Although pre-contract prices of rapeseed have declined slightly in Germany over the past few weeks, they are still attractive compared to those of soft wheat. Agrarmarkt Informations-Gesellschaft (AMI) reports that bids for rapeseed are 2.4 times higher than those for the cereal. In absolute figures, this is just less than EUR 350 per tonne versus EUR 146 per tonne. The Union zur Förderung von Oel- und Proteinpflanzen (UFOP) sees this as a confirmation that rapeseed has a relative benefit in cereal-dominated crop rotations.
UFOP also points out that when deciding what crop to grow farmers should take into account the high value of rapeseed as a preceding crop. According to information published by AMI, there is currently hardly any trading in rapeseed from the 2017 harvest. The reason is not only that demand is scant, but also that farmers’ willingness to sell is low, AMI indicates. The information service reports that farmers are holding back on marketing, because in many places the current crop development in the flowering phase does not allow them to make a reliable forecast of harvest amounts.
Category: Fuels
